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Premier Wen Jiabao made new proposals to boost China's economic cooperation with ASEAN in the opening ceremony of the Third China-ASEAN Business and Investment Summit in Nanning on Tuesday.

 

First of all, Wen said China and ASEAN countries should work for a more enabling environment to facilitate trade, with more efforts on expanding trade in high value-added products, such as mechanical, electrical and hi-tech products.

 

"China has a trade deficit with ASEAN. But we are still committed to further opening market and increasing import from ASEAN," he said.

 

Secondly, the two sides should deepen cooperation in investment, he said.

 

"China will honor its pledge made last year of providing US$5 billion of preferential loans to support Chinese companies in investing and setting up joint ventures in ASEAN countries," Wen pointed out.

 

China encourages Chinese companies to join in the development in ASEAN countries and invest in trade and economic zones with sound infrastructure and production chains, he said.

 

Wen said China also welcomes more ASEAN investment and greater participation in China's economic development.

 

Thirdly, Wen said the investment projects collaborated by two sides could be carried out in diversified forms such as project contracting, equity holdings and technological cooperation.

 

"China will encourage Chinese companies to transfer applicable technologies to ASEAN," he said.

 

Fourthly regarding the establishment of the China-ASEAN free trade area, Wen said negotiations on trade in services and investment should be stepped up to reach agreement at an early date.

 

At last, sub-regional economic cooperation could become a new focus in China-ASEAN cooperation, Wen said.

 

The Indonesia-Malaysia-Thailand Growth Triangle and the Greater Mekong Sub-region Economic Cooperation Program (GMS) are off to a good start, he said, adding that China will actively explore the feasibility of conducting Pan Beibu Gulf cooperation.

 

(Xinhua News Agency October 31, 2006)